124 resistance, 122 support
One of the benefits of training and guest speaking is it forces me to go through charts over and over. During preparation, I uncover things I sometimes miss.
This is a video I prepared (my first one) talking about USDJPY reaction to 124 – a price level that was high of 2007. It is looking like a prominent resistance now and strong price rejection can be spotted on H4. At the same time, 122 is a significant support. I give my take.
Salient points that I covered:
- USDJPY 2007 high looks like a prominent resistance now.
- Price rejection at 124 is very prominent on H4.
- Everything above is probably false break or bull trap.
- Despite this resistance, USDJPY is still up trend.
- 122 is likely to be a support.
- 122 was the level which USDJPY previously broke out.
- There is precedent for 122 to be support since it is former 52-week high.
- We saw similar price action last year at 105.
- There will be buyers at 122.
- Selling now is against the trend especially year to year.
- But if price breaks 122, more people will take notice.
- If USDJPY goes below 122, its correction may speed up.
- Incidentally this may be in line with Kuroda’s comments about USDJPY.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
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